By Senad Karaahmetovic
Meta Platforms (NASDAQ:META) is now a Top Pick at Bernstein after analysts decided to make a move heading into the "make or break" results for the company.
The analysts argue that Meta finds itself at a crossroads for the third time in its history - once during the GFC, second upon an IPO and now when the bear case gets louder and louder.
"We see light beyond the dark and complicated headlines. And in an investment universe lacking high conviction ideas, we move Meta to our top pick," the analysts wrote in a client note.
However, the analysts say that bulls "don't need to prove out the bull case for the stock to work" given how far the pullback in Meta shares has gone.
"On a different day we can pitch the optionality, the health of engagement, and a long runway for digital ads. Today, we just need the company to get back on track (1) provide evidence that global engagement is up across its Family of Apps (2) offer a disciplined expense guide, and (3) show improvement in revenue trajectory," the analysts added.
While bears are saying Meta is the new Yahoo, the analysts counter the claim by saying the social media giant could also stage a successful turnaround, similar to what Microsoft (NASDAQ:MSFT) did.
The analysts also cut the price target to $195 from $230 to reflect "a challenged macro."